Could New Zealand’s state-owned Accident Compensation Corporation (ACC) be given back to the insurance industry? Three weeks out from its national election, the latest polls suggest it could happen.

The Opposition National Party, which has overtaken the government of Labour’s Helen Clark in opinion polls after leader Don Brash promised massive tax cuts, also has a policy in favour of privatising the ACC.

The system was privatised by the last National-led government in 1999, and renationalised by Ms Clark the following year as one of her first acts after taking office.

Dr Brash, who was Reserve Bank Governor only three years ago, says workplace safety will be the big winner from the policy.

Announcing his policy in a Dunedin abattoir – enabling ACC Minister Ruth Dyson to get the word “butchery” into her rebuttal – he said employers must have “the right to choose a workplace insurer that best suits their needs”.

“We will open up the accident insurance market so private insurers can compete for business with the ACC. Both employers and the self-employed will have a choice of retaining the ACC as their insurer or going private.”

Dr Brash says there will be no change in cover. “National is fully committed to the no-fault, 24-hour accident compensation scheme, as it has existed since 1972.

“A competitive market means employers who invest in safety will be rewarded through lower premiums because they will be able to negotiate based on their good record. Those who are slack on safety will be punished with higher premiums.

“Under the present system, everyone is treated the same, so there is no incentive to improve safety.”